Metal Sector - Tactical beneficiaries – part II; throwing caution to the wind - ICICI Sec

The mad scramble of commodities continues globally with LME (Zinc/ Copper/ Aluminium) rising 18%/15%/5% over the past fortnight. The weakness witnessed in Chinese commodity markets have also course corrected and the two most tracked futures (Rebar and Iron ore) have increased 15% and 25% respectively over the past week. All this is happening as dollar index (DXY) tests highs last seen in 2003.

28/11/2016 4:33:31 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Auto has immediate support placed at 8450 levels - GEPL

NIFTY AUTO   Current Close: 8780.40   Trend : Negative

Observation

* NIFTY AUTO is one of the underperforming sectoral indices, as it closed down by around 2.26% at 8780.40, as against an up move of 0.50% in benchmark NIFTY 50.

* The Sector had created an all time high @ 10466.90 in the month of Sep 2016

28/11/2016 4:21:43 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Metal holds Bullish momentum - GEPL

NIFTY METAL   Current Close: 2757.45    Trend : Positive

Observation

* NIFTY METAL is one of the most outperforming sector amongst all the indices last week. It moved up a good 5.01%, as against an up move of 0.50% in benchmark NIFTY 50.

* In the last to last week, the Sector created a Fresh 52 Week

28/11/2016 4:17:43 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Focus shifts to the demonetisation risk cascade - RCML

Our interactions with financial sector stakeholders suggest that demonetisation will have a three-stage impact on NBFCs – the first will be immediate but shortlived due to a transitory cash crunch, while the second will be due to a general economic slowdown and bleeding of the parallel economy as shadow borrowers lose their competitive edge – this second-order impact is of most conc

28/11/2016 2:24:37 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Stocks Trade Higher, Extend gain, Nalco soars 7% - Dynamic Levels

Metal stocks were trading higher in the afternoon trade on Friday on firm global cues. Amidst optimism that demand will accelerate, sentiments improved after a report displayed orders for business equipment hiked in the US, strengthening the outlook for the metal sector. Among the ten components in the BSE Metal index, Nalco was trading close to 7 per cent up at Rs.56.55, followed by JSW Steel

26/11/2016 5:55:40 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Deposit growth rises to 11.7% – much more to come - RCML

As per RBI data, deposit growth for the fortnight ended 11 November increased to 11.7% YoY – note that the data includes deposits collected by banks for only two days post-demonetisation. As per the RBI, banks have received deposits worth Rs 5.1tn up to 18 November (~Rs 6n to date as per media reports). Credit growth weakened further to 7.9% while investment growth declined to 8.1% YoY. W

26/11/2016 3:36:38 PM | Posted in Broking Firm Views - Sector Report read full news
India Automobiles - Uncertainty looms, expect pain till Q4FY17: FADA - RCML

We hosted a conference call with the Federation of Automobile Dealers Association (FADA) to discuss the impact of demonetisation on India’s automobile industry. John K Paul, President, and Nikunj Sanghi, Director – International Affairs & Global Relations, represented FADA. The following are key takeaways from the interaction:

 

Boo

26/11/2016 3:18:29 PM | Posted in Broking Firm Views - Sector Report read full news
Pharmaceuticals - Back to struggling days - Emkay

India Pharma Market- Monthly Checkup

* Indian Pharma Market (IPM) subsided in October’16 with overall growth rate at 5.9%, well below the past two quarters’ monthly average growth of over 10%. Growth in Oct’16 is the lowest in the past three years, ie since September 2013. 

* There’s clearly been a slowdown in the s

26/11/2016 12:17:15 PM | Posted in Broking Firm Views - Sector Report read full news
Indian Equities Sector Wrap - Adviser India Pvt. Ltd

Morningstar India is pleased to publish the inaugural edition of the Indian Equities Sector Wrap, an annual publication that aims to showcase insights and observations on the Indian Equity Mutual Funds. Please find a brief synopsis of the report below:

•    Despite witnessing a lower level of flows during the first half of 2014, the year ended on a positive note wi

26/11/2016 12:10:44 PM | Posted in Broking Firm Views - Sector Report read full news
IT Index gives Breakout, Turns out to be the Best Bets - Dynamic Levels

IT stocks had been all time favorite investment area for many investors for a long time at it had the potential to yield high returns.

In February 2009, the Index was trading at approximately 2000 level. Till December 2010, it had rallied almost 275 per cent to trade at 7500 level. In 2011, the Index corrected and slipped by almost 33 per cent to 5000 level. Then again, in March 2015,

25/11/2016 5:24:15 PM | Posted in Broking Firm Views - Sector Report read full news
power Sector - Muted demand continue to impact generation growth - Emkay

Key highlights

* Generation remained flat at 1.1% YoY in October 2016, due to muted demand across industry and agriculture segment.

* With moderate demand and generation, the overall industry PLF declined by 375 bps YoY to 44.5%. PLF declined across Coal and Gas segment, but was up across Hydro and the Nuclear segment due to improved rain an

25/11/2016 3:25:08 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector - October-16 domestic air passenger growth at 23.3% YoY - Motilal Oswal

Domestic load factor at 81.1%; IndiGo’s domestic ASK/RPK share highest

* Domestic air passengers in India grew 23.3% YoY to 8.6m in Oct-16 (v/s +18.8% in Oct- 15; +24% in 2QFY17; ~22% in FY16). However, we believe this strong growth would be at the cost of yields, as seen in headline fares.

* While Oct-16 ASK growth stood at 21.5% YoY

24/11/2016 6:02:36 PM | Posted in Broking Firm Views - Sector Report read full news
Indian Chemical Sector rejoiced in Today’s Trading Session - Dynamic Levels

The Indian chemical sector is rejoicing in Dalal Street today. Major chemical companies like Chemfab Alkalis, Tirumalai Chemicals, Kiri Industries, Philip Carbon, IGPL, Meghmani Organics etc have all surged more than 5 per cent today.

The much anticipated Constitution Amendment Bill - Goods and Services Tax, GST - was passed in the Parliament recently and it will most probably be impl

24/11/2016 5:53:07 PM | Posted in Broking Firm Views - Sector Report read full news
Post Demonetization Drive, Leading Banks Cut Deposit Rate - Dynamic Levels

After Prime Minister Narendra Modi directed that rates are on the way down, the State Bank of India cut bulk deposit rates by up to 1.9 per cent taking advantage of the surge in deposits following demonetization. Others including, ICICI Bank and HDFC Bank, have cut deposit rates by up to 25 basis points since the system is awash with liquidity. Bankers and analysts are anticipating a 25-50 basi

24/11/2016 5:22:12 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile- Channel Checks Update - JHP Sec

Economic growth has taken a backseat after the government decided to ban INR 500 and INR 1000 notes as legal tender. Amongst the most affected, is the automobile industry. Within the automobile industry, 2 wheeler segment is most vulnerable as the share of cash sale in total sales is higher for the segment. We conducted a dealer channel check to assess the impact of currency ban and get a feel

24/11/2016 3:47:27 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Deposit growth rises to 11.7% – much more to come - RCML

As per RBI data, deposit growth for the fortnight ended 11 November increased to 11.7% YoY – note that the data includes deposits collected by banks for only two days post-demonetisation. As per the RBI, banks have received deposits worth Rs 5.1tn up to 18 November (~Rs 6n to date as per media reports). Credit growth weakened further to 7.9% while investment growth declined to 8.1% YoY. W

24/11/2016 3:43:40 PM | Posted in Broking Firm Views - Sector Report read full news
India Automobiles - Uncertainty looms, expect pain till Q4FY17: FADA - RCML

We hosted a conference call with the Federation of Automobile Dealers Association (FADA) to discuss the impact of demonetisation on India’s automobile industry. John K Paul, President, and Nikunj Sanghi, Director – International Affairs & Global Relations, represented FADA. The following are key takeaways from the interaction:

 

* Bookings

24/11/2016 3:30:15 PM | Posted in Broking Firm Views - Sector Report read full news
Chemical Sector Declines Due To Rise In Crude Oil Prices - Dynamic Levels

Kiri Industries, Bhageria and IGPL shares were trading 5 per cent lower on the National Stock Exchange (NSE) today. Chemical sector was seen moving down on the back of global crude prices rising on expectations that the OPEC - Organization of the Petroleum Exporting Countries will reach a deal in its Vienna meeting later this month to cut output. Crude oil is a major raw material used in making

22/11/2016 4:13:44 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Media has immediate support placed at 2400 levels - GEPL

NIFTY MEDIA   Current Close: 2585.15    Trend : Negative

Observation

* NIFTY MEDIA is one of the most underperforming sectoral indices, as it closed down by a good 5.57% at 2585.15, as against a down move of 2.68% in benchmark NIFTY 50.

* The Sector had created an all time high @ 3158.30 in the month

21/11/2016 5:56:26 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank holds Bullish momentum - GEPL

NIFTY PSU BANK        Current Close: 3382.60      Trend : Positive

Observation

* NIFTY PSU BANK is the only sector amongst all the indices that has closed in the GREEN last week. It moved up by 1.88%, as against a down move of 2.68% in benchmark NIFTY 50.

* In the last to last wee

21/11/2016 5:30:46 PM | Posted in Broking Firm Views - Sector Report read full news
Sweetness Returns to the Indian Sugar Sector - Dynamic Levels

Sugar Sector continues to show signs of robust growth in the early trading session of 21st November 2016 (today) on the back of the commencement of the early sugar crushing session in various states this year.

Major sugar companies such as Oudh Sugar, Upper Ganges Sugar, Dalmia Bharat, Dwarikesh Sugar, Dhampur Sugar have been on the upper surge since 18th November 2016. In today&rsquo

21/11/2016 3:24:39 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector - RJio channel check – Pushing the pedal harder - Motilal Oswal

We conducted a channel check with RJio’s center heads and ex-senior management (including marketing and strategy heads). We discussed current on ground situation, nearterm execution strategy, strategic vision and market positioning over a 2-4 year horizon. From this, we understand that RJio has extended its distribution channel from just own retail stores previously to modern outlets and

18/11/2016 2:32:36 PM | Posted in Broking Firm Views - Sector Report read full news
India Pharmaceuticals - Q2 Review: Some hits, some misses - RCML

Our pharma universe posted Q2FY17 revenue growth of 11.3% YoY, broadly in line with estimates. EBITDA margins were 120bps higher than expected at 25.7% driven by lower R&D spends (vs. guidance) and a better geographical mix (resilient US + healthy domestic sales). We continue to prefer mid-caps (ARBP, CDH, GNP), though we also upgraded SUNP to BUY after the recent correction given a positiv

18/11/2016 2:25:09 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Regulatory forbearance ahead; structural story intact - RCML

* Regulatory forbearance likely for SMEs and small borrowers…:

Media reports suggest that the government may ask the RBI to consider lenient loan classification norms, especially for SME and MSME units. Loans may not need to be classified as NPA if interest or repayment is overdue for more than 90 days.

 

*

18/11/2016 2:22:34 PM | Posted in Broking Firm Views - Sector Report read full news
India Consumer - Froth starting to come off - RCML

Our consumer universe posted Q2FY17 net sales/EBITDA/adj. PAT growth of 8%/9%/13% YoY. We have been underweight on the sector for the last 12 months and continue to find the risk-reward unattractive even after the recent correction, as valuations need to be adjusted to a lower earnings profile for the sector (10-12% over FY16-FY19E vs. 20% over FY08-FY16). We retain ITC as BUY and find risk-rew

17/11/2016 3:13:22 PM | Posted in Broking Firm Views - Sector Report read full news